Geopolitical Tensions Roil Asian Markets Amid U.S. Dollar Surge

Asian stocks tumbled on Wednesday, mirroring Wall Street declines, fueled by Iran's missile strike on Israel, sparking fears of broader conflict. Investors shifted to safer assets, with U.S. Treasury yields dropping and gold prices near all-time highs. The U.S. dollar remained strong amid resilient job market data and Eurozone inflation trends.

Asian stocks fell sharply on Wednesday in response to escalating geopolitical tensions, following Iran's missile strike on Israel. This event has raised concerns over a potential wider regional conflict, causing crude oil prices to spike due to anticipated supply disruptions.

Investors sought refuge in safer assets, pushing U.S. Treasury bond yields down during Asian trading hours, while gold prices hovered near an all-time high. The U.S. dollar also remained robust, buoyed by a resilient domestic job market and Eurozone inflation trends indicating an upcoming rate cut from the European Central Bank.

The drop in stock prices was widespread, with Japan's Nikkei losing 1.5%, South Korea's KOSPI down 1.3%, and Australia's benchmark falling 0.3%. Hong Kong's Hang Seng was closed due to a holiday, and Chinese markets remained shut for the Golden Week.

Further economic indicators included increased U.S. job openings in August, suggesting a strong labour market despite slowing hiring trends. Additionally, U.S. politics are in focus as Democrat Tim Walz and Republican JD Vance prepare for a vice-presidential debate on Wednesday.

(With inputs from agencies.)